French producer Theolia hit by liquidity crisis

French renewable energy producer Theolia joins the growing list of companies in financial difficulties. The company revealed last month that it would not meet its revised target of at least EUR 20 million for earnings before interest, taxes, depreciation and amortisation in 2008, nor its goal of 2000 MW installed capacity by 2012 because of a liquidity crisis. Theolia's share price dropped 18.36% to EUR 4.26 on the news. At the same time, new CEO Marc van't Noordende announced Theolia would revert to selling wind plant in order to raise cash, overturning the policy change made in September to retain its operational wind assets (Windpower Monthly, November 2008). Theolia has already agreed to sell 55.5 MW operating in Germany's Saxony-Anhalt region to Meinl International Power, a financial investor based in the Channel Islands, for EUR 81 million. The survival plan envisages laying off around half the 274-strong workforce, accelerating the sale of its non-wind assets, focusing on a narrower geographic base and concentrating on organic growth. Plans to list Theolia Emerging Markets have also been shelved. Better news for the company was that consolidated sales were up 1.92% to EUR 85.1 million over the first nine months of the year.

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